Establishes a hire-now tax credit; provides for new job creation; also provides for additional credit where the person hired was receiving unemployment.

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S1861-2013 Actions

• May 21, 2013: REPORTED AND COMMITTED TO FINANCE
• Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S1861-2013 Meetings

Investigations and Government Operations: May 21, 2013

S1861-2013 Votes

S1861-2013 Memo

BILL NUMBER:S1861

TITLE OF BILL:  An act to amend the tax law, in relation to establishing
a hire-now tax credit

PURPOSE:  To enact a Hire-Now tax credit and an additional incentive for
hiring the unemployed.

SUMMARY OF PROVISIONS: "HIRE-NOW-NY" TAX  INCENTIVE:    Our  Hire-Now-NY
proposal includes direct incentives for each new job employers create, a
business would get a tax credit of up to $5,000 per employee for a maxi-
mum  of three years. The credit will equal 6.85 percent of wages paid to
the employee. The hires must be new employees. In order to  qualify  for
the  Hire-Now  credit  the  employee  must  be hired by April 1, 2014 to
encourage a quick boost in jobs.

UNEMPLOYMENT  BONUS  CREDIT:  The  "HIRE-NOW-NY'  tax  incentive   would
increase  to up to $8,000 if the employer hires someone who is currently
unemployed. The new employee must be employed full time for a full  year
to qualify for the additional $3,000 credit.

JUSTIFICATION:  This  bill  will  help  create  thousands of new private
sector jobs by offering direct incentives to employers  for  hiring  new
employees.

LEGISLATIVE  HISTORY:  2011-2012 - S.76641A.10668 - PASSED SENATE/Ways &
Means

FISCAL IMPLICATIONS: This  bill  is  estimated  to  save  employers  $50
million in SPY 2014-15.

EFFECTIVE DATE: Effective immediately.

S1861-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    1861

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  Introduced  by Sens. RANZENHOFER, DeFRANCISCO, GALLIVAN, MAZIARZ -- read
    twice and ordered printed, and when printed to  be  committed  to  the
    Committee on Investigations and Government Operations

  AN  ACT to amend the tax law, in relation to establishing a hire-now tax
    credit

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.  The tax law is amended by adding a new section 38 to read
  as follows:

    S 38. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER,  WHICH
  IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER AND
  WHICH CREATES A NEW JOB, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX. THE
  AMOUNT  OF  THE  CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE
  PRODUCT OF 6.85 PERCENT AND THE GROSS WAGES PAID FOR EACH NEW  EMPLOYEE.
  THE  CREDIT  SHALL  NOT  BE  MORE THAN FIVE THOUSAND DOLLARS FOR ANY NEW
  EMPLOYEE FOR ONE FULL YEAR OF EMPLOYMENT; IF A  NEW  EMPLOYEE  HAS  BEEN
  HIRED  FOR  LESS  THAN A FULL TAX YEAR THIS AMOUNT SHALL BE PRORATED AND
  APPORTIONED TO EACH TAX YEAR BUT SHALL IN NO WAY DECREASE THE FULL THREE
  CONSECUTIVE YEARS OF CREDIT ELIGIBILITY. THE  TAXPAYER  MAY  CLAIM  THIS
  CREDIT  FOR EACH NEW EMPLOYEE FOR A PERIOD OF THREE CONSECUTIVE YEARS OF
  EMPLOYMENT.  THE TAXPAYER MAY OFFSET  QUARTERLY  ESTIMATED  TAX  RETURNS
  WITH THE AMOUNT OF THIS CREDIT EARNED IN ANY PREVIOUS QUARTER.
    (B) UNEMPLOYMENT ENHANCEMENT. FOR CALENDAR YEARS TWO THOUSAND FOURTEEN
  AND  TWO  THOUSAND  FIFTEEN IF A NEW EMPLOYEE WAS RECEIVING UNEMPLOYMENT
  INSURANCE BENEFITS AT THE TIME OF HIRE,  AN  ADDITIONAL  THREE  THOUSAND
  DOLLAR CREDIT WILL BE ALLOWED FOR THE FIRST FULL YEAR OF EMPLOYMENT.
    (C)  DEFINITIONS.  AS  USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
  HAVE THE FOLLOWING MEANINGS:

    (1) "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT IS HIRED  BY
  THE  TAXPAYER  AFTER  JULY FIRST, TWO THOUSAND THIRTEEN AND BEFORE APRIL

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD02565-02-3

 S. 1861                             2

  FIRST, TWO THOUSAND FOURTEEN, THAT CAUSES THE TOTAL NUMBER OF  EMPLOYEES
  TO  INCREASE  ABOVE  BASE  EMPLOYMENT OR CREDIT EMPLOYMENT, WHICHEVER IS
  HIGHER.
    (2) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND TWELVE.
    (3)  "BASE  EMPLOYMENT"  SHALL  MEAN  THE  AVERAGE NUMBER OF FULL TIME
  EMPLOYEES OR FULL TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR  A
  NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
    (4)  "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
  NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED FOR THE PRIOR TAX YEARS.
    (D) REPLACEMENT EMPLOYEES. IF ONE OR MORE NEW EMPLOYEES  FOR  WHICH  A
  CREDIT  WAS  EARNED LEAVES THE PAYROLL DURING THE SAME TAXABLE YEAR THAT
  AN INDIVIDUAL IS HIRED BY THE TAXPAYER TO WORK IN  THIS  STATE,  CAUSING
  THE  TAXPAYER'S  TOTAL  EMPLOYMENT TO EQUAL AN AMOUNT THAT IS ABOVE BASE
  EMPLOYMENT BUT AT OR BELOW THE COMPUTED CREDIT EMPLOYMENT FOR THE  TAXA-
  BLE  YEAR, THE CREDIT ELIGIBILITY PERIOD FOR THE INDIVIDUAL HIRED DURING
  THE TAXABLE YEAR SHALL BE THREE YEARS MINUS THE AMOUNT OF TIME  (ROUNDED
  TO  THE  NEXT  FULL MONTH) THAT THE TAXPAYER RECEIVED THE CREDIT FOR THE
  DEPARTING EMPLOYEE.
    (E) NO CREDIT SHALL BE ALLOWED UNDER THIS SECTION TO  A  TAXPAYER  FOR
  ANY  NEW  EMPLOYEE  IF  THE  TAXPAYER CLAIMS ANY OTHER CREDIT UNDER THIS
  ARTICLE FOR SUCH NEW EMPLOYEE WHERE THE BASIS OF SUCH OTHER CREDIT IS AN
  INCREASE IN EMPLOYMENT.
    S 2. Section 210 of the tax law is amended by adding a new subdivision
  46 to read as follows:

    46. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER  WILL  BE
  ALLOWED  A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-EIGHT OF
  THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
    (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
  FOR  ANY  TAXABLE  YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
  THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND  (D)  OF
  SUBDIVISION  ONE  OF  THIS  SECTION.  HOWEVER,  IF  THE AMOUNT OF CREDIT
  ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE  TAX  TO
  SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
  YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED
  IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX  OF
  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE PROVISIONS OF SUBSECTION (C) OF
  SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS  CHAPTER  NOTWITHSTANDING,  NO
  INTEREST WILL BE PAID THEREON.
    S  3. Section 606 of the tax law is amended by adding a new subsection
  (vv) to read as follows:

    (VV) HIRE-NOW TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED A CREDIT,  TO
  THE  EXTENT  ALLOWED UNDER SECTION THIRTY-EIGHT OF THIS CHAPTER, AGAINST
  THE TAX IMPOSED BY THIS ARTICLE.
    (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
  THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
  YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
  OR  REFUNDED  IN  ACCORDANCE  WITH THE PROVISIONS OF SECTION SIX HUNDRED
  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL  BE
  PAID THEREON.
    S  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
  of the tax law is amended by adding a  new  clause  (xxxv)  to  read  as
  follows:

  (XXXV) HIRE-NOW TAX CREDIT              AMOUNT OF CREDIT UNDER
  UNDER SUBSECTION (VV)                   SUBDIVISION FORTY-SIX OF SECTION
                                          TWO HUNDRED TEN
    S 5. This act shall take effect immediately.